America Devoured by Big Government

Are unpaid internships bad because they may be more viable for kids from affluent families than others?

The Labor Department is cracking down on employers who break minimum wage laws, investigating and fining companies that are taking advantage of (mostly) young people for whom paid jobs are scarce. When is it legal to have someone work for free? Very rarely, it seems.

If you do go the unpaid labor route, keep in mind if you've applied the criteria incorrectly it can cost you a whole lot more than minimum wage and overtime – a misguided classification could trap you in an expensive legal maze involving discrimination laws, workers' compensation, state and federal taxes, benefits and unemployment insurance coverage, plus fines and legal bills.